CPA is CAC measured at the campaign level. For e-commerce, cost per purchase only becomes meaningful next to the contribution an order leaves; for lead generation, next to the share of leads that become customers.
Formula
CPA = Ad spend ÷ Conversions
Every core ad metric from five numbers: spend, impressions, clicks, conversions and revenue.
Related terms
- CAC (customer acquisition cost)CAC is the total cost of acquiring a new customer, usually marketing spend divided by the number of new customers it produced.
- Conversion rateConversion rate is the share of visitors or clicks that complete a target action, such as a purchase.
- CPC (cost per click)CPC is ad spend divided by the number of clicks.
Part of the growth marketing glossary by Shiva Sharma.